33% of the Federations of Wholesale Distributor’s (FWD) members surveyed could face financial ruin without Government support, explained its chief executive James Bielby.
Speaking on BBC Breakfast this morning, he highlighted the desperate situation foodservice wholesalers find themselves in, adding that this would not only effect the businesses in question but the entire supply chain.
Read more: Reynolds joins the FWD
“The danger is that pubs, restaurants and hotels and leisure will open their doors again for the public but there won’t be enough food in the supply chain to feed them,” said Bielby.
“If there are issues around cash flow and a squeeze on credit, it means there won’t be those businesses available to supply those business re-opening their doors. We are calling on the government to offer some sort of tax relief on products through no fault of their own, wholesalers are having to dispose of.”
The BBC news story also featured Essex-based Metrow Foods, with managing director Bruce Hodges revealing that the wholesaler is having to freeze stock with a short shelf life, calling it ‘dead money.’ “We’ve never seen a situation like this before, where things close down overnight and it’s going to put some people out of business for sure,” he explained.
Read more: Stock availability improving, claims FWD
